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William Hill 2019 Half-year results Delivering on our strategy and well positioned for future growth

by Administrator

William Hill would have reported a £51m profit if not for the FOBT curbs but instead slumped to a £63.5m loss as it took a £97m one-off accounting charge related to the impact on the value of its bookmaking business.  The firm’s chief executive, Philip Bowcock, said: “We are making good progress against the five-year strategy we outlined last year, delivering strong revenue growth in the US and other international markets and positioning William Hill well for future growth.  

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Financial results

 

Strategic and operational progress

“We are making good progress against the five-year strategy we outlined last year, delivering strong revenue growth in the US and other international markets and positioning William Hill well for future growth.

“We continue to expand rapidly in the US, both in Nevada and in the new states, with over $1bn wagered with us in the first half. We are now live in eight states and will expand into at least two more states in H2.

“Online International revenues have grown strongly, up 66%, with the acquisition of Mr Green. We are becoming more diversified with non-UK markets now contributing a third of Online’s revenues, up from just 24% last year. In the UK, performance has improved through the half, up 7% in Q2, as we manage the tax and regulatory impacts.

“In Retail we took the tough decision to announce a consultation process over the proposed closure of around 700 shops to protect the long-term future of the business following the introduction of the £2 stake limit. The response of our colleagues has been incredibly professional during this difficult time and I would like to thank each and every one of them for that.

“Underpinning William Hill’s progress is our sustainability strategy and long-term ambition that nobody is harmed by gambling. The voluntary whistle-to-whistle ban has begun and we have, together with other leading operators, committed to a significant increase in funding for safer gambling measures, including for treatment. We continue to work on additional measures to protect our customers and lead the regulatory agenda.”

 

Notes 

  1. Both the statutory and adjusted results include the performance of Mr Green since the acquisition completed in January
  2. Adjusted operating profit is defined as profit before interest and tax, excluding exceptional items and other defined adjustments. Further detail on adjusted measures is provided in note 3 to the financial
  3. Basic EPS is based on an average of 871.8 million shares for H1 2019 and an average of 858.7 million shares for H1 2018. Adjusted EPS is based upon adjusted profit after
  4. Net debt for covenant purposes and EBITDA for covenant purposes are non-statutory measures. The basis of the calculation is as described in note 24 to the financial statements within our 2018 Annual Report and Accounts, with the addition of the EBITDA of Mr Green for the full rolling 12 month
  5. Results in the Online operating review table are presented on an adjusted basis including Mr Green’s results post acquisition on 28 January
  6. Where pro forma results are stated, this assumes that Mr Green was consolidated into the Group at the end of January 2018, in order to provide a more meaningful comparator period. Further detail on pro forma results are provided in note 13 to the financial statements.
  7. The US Existing business has now been simplified to contain only revenues from Nevada, with all revenues from Delaware now recognised in US Expansion. 2018 results are restated to reflect this
  8. Definitions are provided in the glossary at the back of the
  9. Results are presented on an adjusted basis unless otherwise

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